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Flashcards in PROP Deck (55):
1

Green and Nunn own a 40-acre parcel of land as joint tenants with the right of survivorship. Nunn wishes to sell the land to Ink. If Nunn alone executes and delivers a deed to Ink, What will be the result?

Green will retain 1/2 undivided interest in the 40-acre parcel, and will be unable to set aside Nunn's conveyance to Ink. 

2

Brush is a professor of accounting at a large university. He wishes to hand out copies of a two-page article that can be found both in book in the library and through some software purchased by the university. Both are copyrighted. Which of the following is(are) correct?

I. He may distribute a copy of the article found in the book to each class member for classroom use without getting permission from the publisher.

Il. He may distribute a computer printout of the article from the software to each class member for classroom use without getting permission to use it from the holder of the software copyright. 

I and II are correct

3

On July I, A, B, C, and D purchased parcel of land as tenants in common, each owning an equal share. On July 10, A died leaving will. Subsequently, B died intestate. After A and B's death,

C and D will each own 1/4 interest in the land. 

4

A mortgagor who defaults on his mortgage payments will not be successful if he attempts to

Contest the validity of the price received at a judicial foreclosure sale by asserting that a higher price could have been received at later date. 

5

On July I, A, B, C, and D purchased a parcel of land as tenants in common each owning an equal share. On July 10, A died leaving will. Subsequently, B died intestate. If C sells her interest in the land to X,

D and X will each own a 1/4 interest in the land. 

6

Which of the following circumstances best describes landlord's constructive eviction of tenant who has written lease for the property?

a. The landlord sues the tenant because the tenant complained to government agency about the condition of the premises.

b. The landlord changes the lock and refuses to give the tenant new key.

c. The landlord refuses to provide utilities to the tenant.

d. The landlord starts a legal proceeding against the tenant for failure to pay rent.

 The landlord refuses to provide utilities to the tenant. 

7

If mortgagor defaults in the payment of purchase money mortgage, and the mortgagee forecloses, the mortgagor may do any of the following except

a. Remain in possession of the property after a foreclosure sale if the equity in the property exceeds the balance due on the mortgage.

b. Assert the equitable right of redemption by paying the mortgagee.

c. Refinance the mortgage with another lender and repay the original mortgage.

d. Obtain any excess monies resulting from a judicial sale after payment of the mortgagee. 

Remain in possession of the property after a foreclosure sale if the equity in the property exceeds the balance due on the mortgage. 

8

Delta Corp. leased 60,000 square feet in an office building from Tanner under written 25-year lease. Which of the following statements is correct?

a. In the absence of a provision in the lease to the contrary, Delta does not need Tanner's consent to assign the lease to another party.

b. In the absence of a provision in the lease to the contrary, Delta would need Tanner's consent to enter into a sublease with another party.

c. Tanner's death will terminate the lease and Delta will be able to recover any resulting damages from Tanner's estate.

d. Tanner's sale of the office building will terminate the lease unless both Delta and the buyer consented to the assumption of the lease by the buyer. 

 In the absence of a provision in the lease to the contrary, Delta does not need Tanner's consent to assign the lease to another party.

9

A purchaser of building who receives real estate title insurance will 

Not have coverage for the title exceptions listed in the policy.

10

How long is trademark of corporation valid under the law of the United States? 

 Indefinitely if not registered, until the corporation abandons it. 

11

Sussex, Inc. had given a first mortgage when it purchased its plant and warehouse. Sussex needed additional working capital.  It decided to obtain financing by giving  a second mortgage on the plant and warehouse. Which of the following statements is true with respect to the mortgages?

a. If both mortgages are foreclosed, the first mortgage must be fully paid before paying the second mortgage.

b.  Default on payment of the second mortgage will constitute default on the first mortgage.

c. The second mortgagee may not pay off the first mortgage to protect its security.

d. The second mortgage may not be prepaid without the consent of the first mortgagee.

If both mortgages are foreclosed, the first mortgage must be fully paid before paying the second mortgage.

12

Tremont Enterprises, Inc. needed some additional working capital to develop a new product line. It decided to obtain intermediate term financing by giving second mortgage on its plant and warehouse. Which of the following is true with respect to the mortgages?

a. Default on payment to the second mortgagee will constitute default on the first mortgage.

b. Tremont cannot prepay the second mortgage prior to its maturity without the consent of the first mortgagee.

c. Tremont defaults on both mortgages and a bankruptcy proceeding is initiated, the second mortgagee has the status of general creditor.

d. If the second mortgagee proceeds to foreclose on its mortgage, the first mortgagee must be satisfied completely before the second mortgagee is entitled to repayment. 

If the second mortgagee proceeds to foreclose on its mortgage, the first mortgagee must be satisfied completely before the second mortgagee is entitled to repayment. 

13

Which of the following requirements must be met, by any type of deed, in order for title to real paperty to be transferred?

a. The deed must be delivered to the purchaser of the property.

b. The deed must include a statement of the property's value.

c. The deed must include a general warranty of title.

d. The deed must be recorded by the seller of the paperty. 

 The deed must be delivered to the purchaser of the property. 

14

Bronson is residential tenant with 10-year written lease. In the absence of specific provisions in the lease to the contrary, which of the following statements is correct?

Bronson may not assign the lease.

b. The premises may not be sublet for less than the full remaining lease term.

c. The landlord's death will automatically terminate the lease.

d. Bronson's purchase of the property will terminate the lease. 

Bronson's purchase of the property will terminate the lease. 

15

Which of the following deeds will give real property purchaser the greatest protection?

a. Bargain and sale.

b. General warranty.

c. Special warranty.

d. Quitclaim

 General warranty. 

16

Which of the following warranties is(are) given by general warranty deed?

I. The grantor owns the property being conveyed.

Il. The grantee will not be disturbed in her possession of the paperty by the grantor or some third party's lawful claim of ownership.

Ill. The grantor has the right to convey the property

I, II, and III

17

Which of the following statements regarding the recording of real estate mortgage in state having notice-race statute is correct?

a. The mortgagee must file a financing statement with the appropriate state agency.

b. By recording, the mortgagee will acquire additional rights against the mortgagor.

c. The recording of the mortgage will be important in determining priority among parties who claim an interest in the real estate.

d. The recording of a mortgage is necessary to defeat the claims of a purchaser for value who had knowledge of the mortgage. 

 The recording of the mortgage will be important in determining priority among parties who claim an interest in the real estate.

18

In order for deed to be effective between the purchaser and seller of real estate, the deed must be 

 Delivered by the seller with an intent to transfer title. 

19

A mortgage on real paperty must 

 Be delivered to the mortgagee. 

20

Unless an exception to title is noted in the title insurance policy, title insurance company will be liable to land purchaser for

Recorded easements. 

21

On February 2, Mazo deeded a warehouse to Parko for $450,000. Parko did not record the deed. On February 12, Mazo deeded the same warehouse to Nexis for $430,000. Nexis was aware of the prior conveyance to Parko. Nexis recorded its deed before Parka recorded. Who would prevail under the following recording statutes?

    Notice     Race statute     Race-Notice statute

a. Nexis       Parko                Parko

b. Parko       Nexis                Parko

c. Parko       Nexis                Nexis

d. Parko       Parko                Nexis

 

 Parko       Nexis                Parko

22

Purdy purchased real property from Hart and received warranty deed with full covenants. Recordation of this deed is

Irrelevant if the subsequent party claiming superior title had actual notice of the unrecorded deed. 

23

Trees were cut down and made into lumber. The lumber was used to build house. Which of the following statements best describes the paperty aspect of these events?

a. The trees were and remained real property.

b. The trees were and remained tangible personal property.

c. The trees were real property, then became and remained personal property.

d. The trees were real property, became personal property, then reverted to being real paperty. 

 The trees were real property, became personal property, then reverted to being real paperty.

24

Sharon Rockport wate book that she just published and copyrighted. She wishes to know what are her rights and the rights of her heirs. Which of the following is correct?

a. Her heirs can have no interest in the profits on her book.

b. Her bock requires a copyright notice on it to receive protection under copyright law.

c. The copyright of the bock exists even after death.

d. She must copyright this book and register the copyright to protect the book from others' making profit without her permission.

 The copyright of the bock exists even after death.

25

Which of the following statements is correct with respect to real estate mortgage?

a. It must be signed only by the mortgagor (borrower).

b. It is effective even if not delivered to the mortgagee.

c. It must be recorded in order to be effective between the mortgagor and mortgagee.

d. It does not have to be recorded to be effective against third parties without notice if it is purchase money mortgage.

It must be signed only by the mortgagor (borrower). 

26

Under the Documents of Title Article of the UCC, which of the following correctly describes the standard of liability that must be established to hold warehouser liable for loss or damage to stored property?

a. Strict liability.

b. Deliberate destruction or theft.

c. Ordinary negligence.

d. Gross negligence 

 Ordinary negligence.

27

On June 1, Byrd Corp. purchased a high-rise building from Slade Corp. for $375,000. The building was encumbered by a mortgage and note dated May 1, executed by Slade. The mortgage had been duly recorded by the mortgagee, Fale Bank. The outstanding balance on the mortgage at the time of Byrd's purchase was $300,000. Byrd acquired the property subject to the mortgage held by Fale and, in addition, gave a mortgage on the building to Foxx Finance to secure a nonpurchase money promissory' note in the sum of $50,000. Prior to any payments being made on either loan, Byrd defaulted. As a result, the building was properly sold at a foreclosure sale for $280,000. As a result of the foreclosure sale 

Fale is entitled to receive the full $280,000 out of the proceeds. 

28

Jane and her brother each own interest in certain real paperty as tenants in common. Jane's interest

Will pass upon her death to the person Jane designates in her will.

29

In notice-type recordation jurisdiction, failure by the mortgagee to record its mortgage

Permits a subsequent mortgagee without knowledge of the prior mortgage to have a superior security interest.

30

In general, mortgage on real estate 

Encumbers the mortgagor's legal title to the real estate. 

31

Which of the following situations create(s) an easement under property law?

I. Merrill sells several acres of land to Lace. Later, Lace orally promised to allow Merrill to occasionally use path acnyss the land Lace had aquired.

Il. Danforth sells Boone two acres of land while reserving in the deed the right to use pathway on the land she sold to Boone. 

II only

32

The following statements concern the copyrightability of computer software.

I. Computer software is generally copyrightable.

Il. The fair use doctrine applies to computer software. 

Both I and II

33

Watts gave a mortgage on a vacant lot to Fast to secure payment of a note. Fast assigned the note and mortgage to Beal who paid of the face value for it. Neither Fast nor Beal recorded the mortgage. Subsequently, Fast assigned the same note and mortgage to Rusk who paid 75% of the face value for it and who had no notice of the prior assignment to Beal. Rusk promptly recorded the mortgage and the assignment. Watts has made no payments on the note. The jurisdiction has a notice-type of recordation statute. Under the circumstances 

Rusk is entitled to the full face amount of the Watts note.

34

Dash has agreed to sell a warehouse for $300,000 to Bosch. The contract provided that Dash will convey to Bosch whatever interest Dash may have in the warehouse. Under the terms of the contract, Bosch is entitled to receive a

Quitclaim deed.

35

Geller a raincoat to a client's one day to finish an audit. He placed the raincoat in a closet used by several people. When he completed the audit in the early afternoon, he forgot to take the raincoat with him. Since the weather was nice for the next several days, he left the raincoat there and came back to get it 7 days later when he remembered he had left it. Which of the following statements is correct?

a. The coat is treated as lost property once Geller leaves the premises without the coat.

b. The client is the caretaker of the coat until Geller returns.

c. The coat is treated as abandoned property.

d. If another person sees the coat there for 5 days, he may treat the coat as lost and get title to it.

 The client is the caretaker of the coat until Geller returns.

36

Mini, Inc. entered into a 5-year lease with Rein Realtors. The lease was signed by both parties and immediately recorded. The leased building was to be used by Mini in connection with its business operations. To make it suitable for that purpose, Mini attached a piece of equipment to the wall of the building. Which of the following statements is correct regarding Mini's rights and liabilities?

a. Mini's rights under the lease are automatically terminated by Rein's sale of the building to third party.

b. Mini has a possessory interest in the building.

c. Mini is prohibited from assigning the lease if it is silent in this regard.

d. Mini is strictly liable for all injuries sustained by any person in the building during the term of the lease.

 Mini has a possessory interest in the building.

37

Miser Corp. owned a factory which was encumbered by a mortgage securing Miser's note to City Bank. Miser sold the factory to Sting, Inc. which assumed the mortgage note. Subsequently, Sting defaulted on the note which had an outstanding balance of $15,000. In order to recover the outstanding balance, City

 May sue Sting or Miser.

38

What is an example of paperty that can be considered either personal property or real property?

Growing crops.

39

Dombres is considering purchasing Blackacre. The title search revealed that the property was willed by Adams jointly to his children, Donald and Martha. The language contained in the will is unclear as to whether a joint tenancy or a tenancy in common was intended. Donald is dead and Martha has agreed to convey her entire interest by quitclaim deed to Dombres. The purchase price is equal to the full fair market price of the property. Dombres is not interested in anything less than the entire title to the tract. Under the circumstances, which of the following is correct?

a. Whether the will created a joint tenancy or a tenancy in common is irrelevant since Martha is the only survivor.

b. There is no way or means Whereby Dcmbres may obtain a clear title under the circumstances.

c. Dombres will not obtain title to the entire tract of land by Martha's conveyance.

d. There is statutory preference which favors the finding of joint tenancy.

 Dombres will not obtain title to the entire tract of land by Martha's conveyance.

40

To be enforceable, residential real estate lease must 

Entitle the tenant to exclusive possession of the leased property

41

Which of the following is(are) used to patect intellectual property rights incorporated in computer software?

I. Law of Trade Secrets

Il. Law of Copyrights

Ill. Patent Law

I, II, and III

42

Datam Corporation purchased some software for use in its business from Softcompute Company. Softcompute claims that the software has been legally copyrighted. Which of the following is correct?

a. If any portion of the software is based on database, it may not be copyrighted.

b. If the software consists entirely of a database compiled by Softcompute, it may not be copyrighted.

c. Datam may make archival copies in case of malfunction.

d. Datam cannot be subject to copyright unless the software contained copyright notice.

 Datam may make archival copies in case of malfunction.

43

Which of the following statements is the best definition of real property?

a. Real property is all tangible property including land.

b. Real property is land and intangible property in realized form.

c. Real property is only land.

d. Real property is land and everything permanently attached to it.

Real property is land and everything permanently attached to it.

44

Plant purchased a plot of land from Sano 30 years ago. Although neither party knew, the deed contained an error giving Plant some land he did not buy. Plant built his home on the plot. Part of the home was constructed on the land he received in error. Now 30 years later, Plant's neighbor, Wallace, is complaining for the first time about the error. Wallace is now asking Plant for a huge sum of money or he "will sue to get Plant off the land." What is the legal result?

Plant must neither pay money to Wallace nor move his home.

45

A tenant's personal paperty will become fixture and belong to the landlord if its removal would

Result in substantial harm to the landlord's property

46

Which of the following statements pertaining to mortgage on building is incorrect?

a. The mortgage must contain a description of the property subject to the mortgage.

b. The mortgage must be in writing and signed by the mortgagor.

c. The recording of the mortgage is necessary to validate the rights and liabilities of the mortgagor and mortgagee against each other.

d. The mortgagor customarily retains legal title to the building despite the mortgage. 

 The recording of the mortgage is necessary to validate the rights and liabilities of the mortgagor and mortgagee against each other. 

47

Rand conveys her real property to Hume by deed for 5 years with the remainder going to Tran for Tran's life. If Rand then dies first, Tran second, and Hume in 5 years, who has title to the real estate? 

Rand's heirs in 5 years.

48

Shea Corp. owns a factory that has a fair market value of $50,000. Deal Bank holds a first mortgage and Rift Finance holds a second mortgage on the factory. Shea has discontinued payments to Deal and Rift. As a result, Deal, which is owed $45,000, and Rift, Which is owed $15,000, have foreclosed on their respective mortgages. If the factory is properly sold to Bean at a judicial sale for $50,000, after expenses, 

Rift will receive $5,000 out of the proceeds.

49

Ivor, Queen, and Lear own a building as joint tenants with the right of survivorship. Ivor donated his interest in the building to Day Charity by executing and delivering a deed to Day. Both Queen and Lear refused to consent to Ivor's transfer to Day. Subsequently, Queen and Lear died. After their deaths, Day's interest in the building consisted of 

 A 1/3 interest as a tenant in common. 

50

A tenant renting an apartment under 3-year written lease that does not contain any specific restrictions may be evicted for 

Counterfeiting money in the apartment.

51

Which of the following provisions must be included in residential lease agreement?

a. A description of the leased premises.

b. A requirement that the tenant have public liability insurance.

c. A requirement that the landlord will perform all structural repairs to the property.

d. The due date for payment of rent.

 A description of the leased premises. 

52

Mini, Inc. entered into a 5-year lease with Rein Realtors. The lease was signed by both parties and immediately recorded. The leased building was to be used by Mini in connection with its business operations. To make it suitable for that purpose, Mini attached a piece of equipment to the wall of the building. Which of the following is most important in determining whether the equipment became fixture?

a. Whether the equipment can be removed without material damage to the building.

b. The fair market value of the equipment at the time the lease expires.

c. Whether the attachment is customary for the type of building.

d. The fact that the equipment was subject to depreciation. 

 Whether the equipment can be removed without material damage to the building. 

53

On July 1, Bean deeded her home to Park. The deed was never recorded. On July 5, Bean deeded the same home to Noll. On July 9, Noll executed a deed, conveying his title to the same home to Baxter. On July 10, Noll and Baxter duly recorded their respective deeds. In order for Noll's deed from Sean to be effective it must 

 Include a satisfactory description of the property. 

54

On April 5, Walsh purchased a warehouse from Bock for $150,000. Best Title Co. had performed a title search of the property. The results of the title search indicated that a mortgage given to Stone by Bock was duly recorded against the warehouse on March 9. However, the title search failed to detect a purchase dated March 2, given by Bock to Todd. This mortgage was never recorded. Walsh was unaware of the mortgage to Todd. Under the circumstances, 

 Walsh will take title to the warehouse free of Todd's mortgage. 

55

Which of the following factors is least significant in determining whether an item of personal property has become fixture?

a. The manner of attachment.

b. The adaptability of the item to the real estate.

c. The value of the item.

d. The extent of injury that would be caused to the real property by the removal of the item.

 The value of the item.